Study on ectoparasitic skin defects and their impact on the tanning industry was carried out from November 2008 to March 2009. The objectives of the study were to identify the type of skin defects due to ectoparasitic skin diseases that caused downgrading and rejection of pickled sheep and wet blue goat skins at Sheba tannery. A cross-sectional study of pickled and wet blue goat skins processed in Sheba tannery was used as subjects of the study. Accordingly, 700 pickled sheep and 700 wet blue goat skins from each stage were randomly examined to identify the type of skin damage in the tannery. Each selected skin was sorted by size and examined for defects in natural light by skin selectors, and defects on each skin were recorded, and skins were graded into seven grades. The study revealed that scratch was the dominant defect with prevalences of 43.86% and 44.84%, respectively. The prevalence of defect observed in wet blue goat skins due to demodectic mange was 7.74%, while in pickled sheep skins, this was 0%. There was a statistically significant difference (P<0.05) in the prevalence of cockle ("ekek") lesions between pickled sheep skin and wet blue goat skin. Although significant association (P<0.05) was observed between cockle and scratch on both skin types, no association (P>0.05) was seen between scratch and scar.